Regarding income tax

Dear All..

I am having some queries.Please resolve them as soon as possible..

A person who is a Priest in profession is having income from agriculture and sale of property.He is having around 75 - 80 lakhs. He has made FD out of it. All FD s are in the name of 3 persons viz, Him,his brother and mother. They all are joint holders. Brother and mother are above 86 years and he is 67 years old.

Now, the point is he doesnt want to show his income. He was asking suggestions to avoid tax. Can he make FD in the name of his wife? or unmarried daughters ? or Married daughters in order to avoid tax?

Can it be declared as HUF as the brothers are staying together? if yes whats the benifit we can claim as HUF?

What can be done to avoid tax? As he has become old he cannot pay tax every year ,if once he declares his income he has to declare and pay tax every year.Plz suggest...Its very urgent...

Thanks in advance

Replies (2)

Assuming that rate of interest from FD is 8.50%, the interest earned on 80 lacs is about 6.8 lacs pa. Dividing it by 3 (holders) will be 2.2 lacs. That is below taxable limit for senior citizens. You may submit form 15H to the bank and IT dept. The bank will not deduct TDS on interest.

Hope a proper nomination is given to banks, and a Will is prepared to avoid complications in the future.

 

Wait for more replies.

 

Thank U..Can u tell me the benefits of HUF?

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